Velta US Inc (the United States), the parent company of Production and Commercial Company Velta LLC with assets for the extraction of titanium containing ores in Novomyrhorod, Kirovohrad region, from January 31 this year began a series of multi-round negotiations with American partners to develop a roadmap for interaction between the Ukrainian supplier of titanium raw materials and U.S. companies and institutions that are consumers of titanium.
In 2022, supplies to the North American market will account for 65% of Velta’s total production, according to a company press release. Such growth is dictated by the shortage of high-quality titanium raw materials in the United States, as well as the high level of American interest in Ukrainian titanium, which is fixed in the law on the budget for national defense.
It is especially important for Velta to start negotiations with American partners right now, Matthew Murray, a member of the advisory board of Velta US inc. and moderator of the talks, believes.
National Defense Authorization Act No. 6505 for Fiscal Year 2022 requires the U.S. Department of State within 180 days to draw up a report on reducing America’s dependence on titanium supplies from China and Russia, including by increasing supplies from Ukraine, the press release says.
“We are firmly convinced that the new stage of negotiations will help find new points of intersection between Velta and our American partners in the titanium industry,” Andriy Brodsky, the CEO of Velta, stated.
As reported, Velta US Inc intends to increase supplies of ilmenite concentrate to the U.S. by 15-23% in 2022. At the same time, in January, Velta held a meeting of the advisory board, formed in October 2021, to discuss further expanding the company’s presence in the U.S. market, taking into account the analysis of signed contracts for 2022.
Velta US Inc (the United States), the parent company of Production and Commercial Company Velta LLC with assets for the extraction of titanium-containing ores in Novomyrhorod, Kirovohrad region, intends to increase supplies of ilmenite concentrate to the United States by 15-23% in 2022.
According to the company’s press release, Velta in January held a meeting of the advisory board formed in October 2021 to discuss further expanding the company’s presence in the U.S. market, taking into account the review of signed contracts for 2022.
“This year, the company will increase its supplies of ilmenite concentrate to the U.S. by 15-23%. This process is also facilitated by the shortage of high-titanium raw materials in the North American market, which Velta is able to fully satisfy. I believe that this is only the beginning, and the company has great growth prospects, especially in the U.S. market,” Matthew Murray, a member of the advisory board of Velta U.S. Inc., the former deputy assistant secretary of commerce for Europe, the Middle East and Africa, said.
During the meeting, Andriy Brodsky, the CEO of Velta, voiced his support for the recently passed Section 6505 of the FY 2022 National Defense Authorization Act by the U.S. authorities, which calls for the U.S. Department of State to prepare a report on U.S.-Ukrainian cooperation in the context of reducing America’s dependence from titanium supplies from China and Russia, including due to an increase in supplies from Ukraine.
“Velta is ready to get involved in the process of developing mechanisms for cooperation between the United States and Ukraine regarding the supply and processing of titanium, as well as provide any necessary information and data for the formation of the Department of State report on the creation of new supply chains in the United States,” Brodsky said.
At the same time, it is noted that positive trends in Velta’s cooperation with American partners can become catalysts for the expansion of the existing mining complex and the launch of the Lekarevsky asset.
As reported, Velta US Inc created an advisory board on October 13, 2021 and is conducting a separation of mining and innovation business areas. At that time, it was announced that Matthew Murray, as the first member of the advisory board, would oversee the development of the company’s strategic vision and partnership in the U.S. market.
Ukraine in January-July this year increased exports of titanium-containing ores and concentrate in quantity terms by 10.3% compared to the same period last year, to 358,762 tonnes.
According to statistics released by the State Customs Service, in monetary terms, exports of titanium ores and concentrate increased by 22.2%, to $93.870 million.
At the same time, the product was mainly exported to China (26.03% of supplies in monetary terms), Mexico (14.78%) and the Czech Republic (13.63%).
Ukraine during this period imported 588 tonnes of titanium-containing ores worth $545,000 from Senegal (86.24%) and Germany (13.76%), while in January-July last year it imported 650 tonnes for $525,000.
